business management and the role of communication

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A good relations practice is an essential component of any effective business enterprise. The critical role of contact within an organization is the distribution of knowledge needed by employees to fulfill their duties, as well as the creation of loyalty and trust relationships. As a result, workplace collaboration is critical to a company's ability to be profitable and run smoothly. Workers are motivated and fulfilled because there is consistent upward and downward contact with positive feedback. When managers can listen to and react to staff, it contributes to an improvement in workplace job satisfaction. And when employees are happy and motivated they perform their work well, and this leads to more satisfied customers (Dixon, 2017). This research paper will examine the role and importance of communication in business management.

The Role and Importance of Communication in Business Management

Research question

The research question of this paper is, ‘what is the role and importance of communication in business management?’

Objectives of this research

The broad objective of this research is to examine the role and importance of communication in business management.

The importance of this research/study

Communication has a significant role in the whole cycle of business management, starting from the inception of ideas, the creation of product/services, and marketing of that product/service. Therefore, understanding the role and importance of communication to business management is paramount, because it is the primary process by which the management and organization in its entirety accomplish their sets of vision, mission, objectives, and goals that culminate to their success. Therefore, this is an essential area of study that needs to be examined and analyzed to ensure the significance of communication to business management is well understood and applied in business organizations. Moreover, on the field of business management, a lot of academic studies have been done to check on the role and importance of communication in business management. Thus, conducting this research will be a significant contribution to the business world.


The good communication process is the background of every business organization, which wants to succeed in the long-term. In the business world, the communication is considered as the interaction between the management, employees, customers, and other stakeholders each day whereby the main thing is to exchange information. However, at the organizational level communication is divided into two parts, that is, internal and external communication. The internal communication takes place between the management and the employees, whereas for the external communication the organization deals with other stakeholders like the customers, government agencies, and investors among others (Obioma Ejambo, 2015). Both external and internal communications are very critical to business management. Therefore, linking the two together is an important aspect that every manager of an organization must strive to achieve. Efficient and effective communication are essential aspects of the managers or supervisors in the business enterprise, because it helps them to perform their primary functions of management such as controlling, leading, organizing, and planning. Moreover, communications help the managers to fulfill their responsibilities and jobs without hindrances. A professional business manager should be able to assess business failures and successes, spearhead new ideas and be able to delegate authority. Nevertheless, to succeed in doing this, the manager or supervisor must be able to communicate well. Therefore, communication plays a significant role in the success of any policy or program that management would like to apply or implement in the business (Real, 2016).

Excellent communication is the foundation that keeps motivation within the business alive, and the management can understand how employees are performing their work and what is needed to be done to improve the performance. Moreover, communication is the primary source of information that is crucial to the decision-making process, since it helps the management to identify the alternative course of action. When employees are well informed, their attitude is positively enhanced. No business can succeed in isolation, and this makes socializing very significant, and communication is the tool that helps to improve socialization. The research question is examining the role and importance of communication in the business management. Business organizations are run by the people that have different cultures, politics, religions, and ideologies among others, and they depend on them to succeed. Therefore, it is essential for the management to create proper methods of communication that brings everyone together and ensure that good organizational culture is maintained (Sever, 2015).

Literature review

The role of communication in business

Communication in business is utilized in all the messages that are sent or received for business activities such as, performing regular daily affairs of the company, supervision, managing business activities, and running the business. The success of the business organization largely depends on the effective and efficient communication. It happens between business entities, within the organization and among a various group of workers, in market and marketplaces, service providers and consumers, salespeople and prospects, buyers and sellers, and between individuals within the business enterprise and press people. All these communications affect the business either positively or negatively. When these communications are conducted carefully, they help in promoting the business interests (Cusher, 2015).

Communication acts like the lifeblood of the business entity and its core purpose are to effect the change to influence the action within the organization. However, many business organizations have the problem when it comes to the maintenance of adequate communication process. This usually happens when management has poor communication process. According to the research, most of the serious mistakes that occur within the organization are due to a misunderstanding between the managers or supervisors and the employees (Obioma Ejambo, 2015). The core problem in communication within the organization is that the implementers misunderstood the policy makers or managers. Therefore, it is essential to understand that the speaker and the listener are two different people that have limitations and certain things might happen during communication process that might distort the message (Genc, 2017).

The communication within a business enterprise is classified into two groups as informal and formal. The formal communications are cross, horizontal, and up to down communications. Nonverbal communication describes a method of conveying meaning through non-word means. According to the research, 67% of the communication that happens within organizations is non-verbal (Ghanim, 2017). When individuals within the business entity communicate among themselves, this is considered as internal communication. Internal communication takes place to ensure that employees work as a team to achieve a common goal that might be unofficial or official. In many times, the modes of internal communication include written communication and face-to-face. Also, meeting, video conferencing, fax, circular, office order, reports, and memos among others are part of the internal communication. Nevertheless, when people within a business entity communicate with individuals outside the organization, this is considered as external communication. The external communication happens between the organization and the general public, government, media, distributors or dealers, consumers, and investors among others (Kohpeima Jahromi, 2016).

According to the research, the management must be able to communicate instructions, procedures, and policies clearly to their workers; nevertheless, the management must also be able to listen to communications coming from the workers and make the necessary changes based on the matters raised by the employees (Ghanim, 2017). Moreover, to create a good working environment and proper organizational culture, the business managers are also supposed to communicate with various numbers of ways, such as online and in writing, face to face, and talk in large groups. When a manager does not understand the significant role communication plays in the daily activities of the business transactions, it can be hazardous, since it can lead to angry stockholders, dissatisfied clients, and delayed projects. Therefore, the role of communication in the business management and success is very crucial. However, apart from the role of communication being to ensure there is clarity on all the concerned business issues, the role change, mostly depends on the business audience at hand and the goals of the business organization (Apipalakul, 2016).

Audience for communication

Before communication takes place, it is essential for the manager or supervisor to understand the subject that is supposed to be communicated and which group of employees within the organization. It can be very dangerous for the business if the manager or supervisor does not understand the subject that he/she is supposed to communicate to the employees (Sever, 2015). Also, withholding information, which is significant to the entire business organization to know can be very detrimental to that business success. For example, when a new policy affects production team, but also affects the time that assistant manager can reach the production team, then the two groups involved should be notified immediately of the policy. Also, in circumstances where the whole organization is not supposed to know about certain information, but if they know the information will benefit the organization and help it succeed, then the manager is supposed to know the best time to communicate that information. Some information such as, establishing an award system is motivating information to the employees, and the manager is supposed to share this kind of news with employees even before implementation of that system (Real, 2016).

Organizational communication and it's significant

Business enterprises are social units, which are congregated for production and they are formed by people that have differing knowledge and view of achieving a common goal. From a broader perspective, business enterprises make an effort to provide common sense for production and intra-organizational cooperation. Moreover, they work hard to create a relationship with the external environment and to adopt dynamic such as, uncertain conditions and competition. All this is done by strategizing the information which they get from their environment, which is usually transferred and processed at the information processing centers of the business (Genc, 2017). Administrative and business functions for dealing with in and out of the business enterprise and information exchange need a functional and practical communication method. Therefore, communication is a significant aspect of the organization. Businesses which do not develop adequate communication usually sways like a boat that does not have a steer. It is effective communications that help companies strengthen the workers to achieve the organizational goals. Individuals and teams are connected to the business with communication phenomenon, and then the corporate structure is established through communication. The organization members share business reality through communication. Therefore, excellent communication within the organization helps to transfer organizational goals and objectives to the intra-organizational groups and employees. Also, communication provides sharing of organizational beliefs, vision, and values among workers (Dixon, 2015).

Organizational communication is the exchange of opinions and knowledge within an organization (Dixon, 2015). Also, organizational communication is establishing a positive atmosphere for all the workers within the organization (Cusher, 2015). These two definitions make corporate communication a broader dimensional concept instead of information traffic. Therefore, communication within the business enterprise should be transferred from the management to supervisors and then to the workers and also from employees to supervisors and then to the management. Nevertheless, when business becomes complex and more prominent, organizational communication becomes difficult, and necessity of communication quality continues to increase. The communication process within an organization should be about exchanging and creating information in a dependent relations network. It is, therefore, a method of transmitting news concerning the work from business to workers and through the workers. Thus, communication within an organization is a social process that provides information exchange and contact between departments, management, and employees for business operations and accomplishment of the organization goals and objectives. When the communication process happens effectively, then workers can understand their functions and roles and the management can guide everyone how to implement the objectives of the organization. Therefore, good communication within the organization helps to provide support in different areas such as, eliminating the barriers between departments, supporting the decision process, and making the teamwork possible (Dixon, 2017).

Theoretical framework

The theoretical framework for this research is based on the cybernetic theory that emphasizes in the mathematical theory of communication and control system by utilizing the regulatory feedback. In business, feedback can either be negative when the response is delayed or positive when the needed result is realized. The management is supposed to use the feedback to gauge the effectiveness of a specific message communicated within the organization. The theory of cybernetics deals with communication and control of regulatory feedback, both on lifeless systems and living (machines, organizations, and organisms). Therefore, it focuses on how anything, whether (biological, mechanical, or digital) process information, controls its behavior, reacts to changes and information or can be changed to better achieve those three basic tasks (Dixon, 2017).

In applying these theories to this research, it is clear from the previous studies that effective communication is vital to business management. Business organizations have various departments and management should not be satisfied by writing circulars and memos, calling a meeting, sending text messages, and giving instructions. There is a need for the managers or supervisors to personally inform employees of the innovations and policies that the company wants to implement to enable employees to be aware and participate efficiently and effectively on the matters that concern them (Real, 2016). Doing this helps to strengthen the communication relationship between the source (management) and the receiver (employees), who are an essential variable in the communication process within the organization. Therefore, the management must always make sure that when they communicate their information or message is clear and is a credible and trusted source, that is, from either a manager or supervisor among others accountable senior officials. Furthermore, utilizing cybernetics theory in this research, is very important in business management, which wants to achieve worker performance to make sure that feedback mechanism is enough either in the attitude to high performance, productivity, and work of both workers and senior staff. Also, to have a proper business management, the manager must continue to communicate and interact effectively with employees most of the time to ensure that the entire business is productive (Kohpeima Jahromi, 2016).


This research relied heavily on the previous studies that were conducted in this field of study. The sources used are peer-reviewed professional journals. These sources have been analyzed and examined, and then used to write this research paper. All the sources used were published within the last three years.


From this research, it is evident that communication plays a crucial role in business management. It is clear that for a business organization to succeed there must be the precise, adequate utilization of understandable, efficient, and effective instrument and channels of communication. Also, communication can either be formal or informal and external or internal, however, in whichever the case the management must ensure that the communicated message is clear, understandable, trusted, and credible. Good communication enhances the performance of the employees, and this improves their relationship with the management. Also, the management must all time, consider effective communication process as an integral part of the business management strategy, since it helps in enhancing the achievement of the organizational objectives and goals. Moreover, to create harmony within the organization, the management should encourage practical participation of the employees on issues, which affect their performance and creativity. Also, the management should clearly state the objective of effective communication to ensure that all employees and targeted teams are well informed (Dixon, 2017).

It is advisable to use many communication methods like both formal and informal, because they help to establish peaceful cooperation and understanding within the business organization. Also, this research has found that effective communication increases employees’ performance because when workers are well communicated or informed they perform better than those who are not well informed. Part of making sure that employees are well informed is to ensure that they are well trained on the new techniques and innovations introduced in the business so that they can be able to perform their work well. Therefore, it is advisable for the managers within the business enterprises to ensure there is smooth communication within the organization and also to determine the communication needs of the employees (Genc, 2017).


Apipalakul, C., & Ngang, T. K. (2016). The Effect of Organizational Climate to Conflict Management among Organizational Personnel. Global Journal of Business, Economics and Management: Current Issues, 6(1), 12.

Cusher. (2015). Leaders in Conversation: The Dialectic Model of Leadership Education in Plutarch's Lives. Journal of Leadership Education, 14(2).

Dixon, M. A. (2017). Corporate Communication. The International Encyclopedia of Organizational Communication, 1-11.

Genç, R. (2017). The Importance of Communication in Sustainability & Sustainable Strategies. Procedia Manufacturing, 8, 511-516.

Ghanim Ezzeldin, A. M. (2017). Faculty perceptions of the importance of communication in Saudi Arabia Higher Education Najran Community College: Case study. Cogent Business & Management, 4(1).

Kohpeima Jahromi, V., Tabatabaee, S. S., Esmaeili Abdar, Z., & Rajabi, M. (2016). Active listening: The key of successful communication in hospital managers. Electronic physician, 8(3), 2123-2128.

Obioma Ejimabo, N. (2015). The Influence of Decision Making in Organizational Leadership and Management Activities. Journal of Entrepreneurship & Organization Management, 04(02).

Real, K. (2016). Communication and Generativity in Appreciative Inquiry Practice: A review of recent peer-reviewed research. AI Practitioner, 18(1), 14-23.

Sever, N. S. (2015). Value of Perception in Organizational Reputation and Corporate Communication: The Case of Esgaz Eskisehir Natural Gas Distribution Company. International Journal of Academic Research in Business and Social Sciences, 5(5).

November 17, 2022

Sociology Economics

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